NJ prison inmate scams IRS out of $200,000

AFTP
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NJ prison inmate scams IRS out of $200,000

Post by AFTP »

http://www.delawareonline.com/article/2 ... |text|Home

Well I guess the good news is he's already in jail. :roll:


NJ prison inmate scams IRS out of $200,000
Jun. 30, 2011 |

CAMDEN — The IRS lost more than $200,000 in a phony tax-return scam run from a Camden prison cell, authorities say.

A convicted robber from Ocean County operated the scheme at Riverfront State Prison from September 2006 through early 2007, federal officials say. Jerry Julian, 47, submitted bogus returns -- and usually got refunds -- for more than 60 inmates at the North Camden prison, according to the U.S. Attorney's Office for New Jersey.

Julian, formerly a kitchen worker from Seaside Heights, pleaded guilty Monday to one count of aiding and assisting in the preparation of fraudulent returns, the federal prosecutor's office said. Authorities said he charged inmates a fee to prepare phony returns for tax years 2003, 2004 and 2005.

Julian told fellow inmates the federal government paid minimum wage for the prisoners' labor, amd that they could claim a refund of employment taxes withheld. In fact, inmates make no more than $5 a day and no taxes are withheld, the U.S. Attorney's Office said.

Julian said he helped file more than 110 returns, with falsified earnings and tax withholdings, that produced refunds of almost $215,000, officials said.

Julian was serving a 10-year sentence for robbery when he operated the scam at the Camden prison, authorities said. He now is being held at Newark's Northern State Prison.

Riverfront State Prison was razed in 2009 in an effort to promote redevelopment of its neighborhood.

Julian, who entered his guilty plea in Camden federal court, is to be sentenced Oct. 14 by U.S. District Judge Noel Hillman.
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Unidyne
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Re: NJ prison inmate scams IRS out of $200,000

Post by Unidyne »

Odds are they'll extend his sentence by a healthy margin and either restrict or prohibit his access to the prison law library.

Remember Russell Dean Landers of the Montana Freemen? He tried to swing a "sovrun" style scam against the prison officials and got his 11 year 3 month stretch extended by 15 years.
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Quixote
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Re: NJ prison inmate scams IRS out of $200,000

Post by Quixote »

What drives me nuts are the uneven effects of IRS attempts to detect and stop refund schemes. One of my clients has had her 2010 refund delayed for months because she was incarcerated for the first 5 days of 2010. Her name, and apparently her release date, are on an IRS "prisoner list". She got her 2009 refund without a hitch despite being incarcerated the last 8 months of 2009.
"Here is a fundamental question to ask yourself- what is the goal of the income tax scam? I think it is a means to extract wealth from the masses and give it to a parasite class." Skankbeat